Elastic (ESTC) Q4 2026 earnings summary

Executive summary

• Q4 FY26 revenue reached $451 million, up 16% year-over-year; FY26 revenue totaled $1.739 billion, up 17% year-over-year, driven by robust sales-led subscription performance and expanding customer base.

• Accelerating customer commitments, with CRPO growth at 20% and RPO growth at 28% year-over-year in Q4; over 1,720 customers with ACV over $100,000 and 240+ with ACV over $1 million.

• AI adoption and platform innovation are major growth drivers, with significant product launches and industry recognition, including Google Cloud Partner of the Year.

• Record Q4 for $1 million deals and significant expansion in customers spending over $5 million annually.

• Platform adoption accelerated across major industries, delivering efficiency, risk reduction, and cost savings.

Financial highlights

• Q4 total revenue was $451 million, up 16% year-over-year; FY26 revenue was $1.739 billion, up 17% year-over-year.

• Q4 sales-led subscription revenue was $375 million, up 19% year-over-year; FY26 sales-led subscription revenue grew 20% year-over-year.

• FY26 non-GAAP operating margin was 16.4%; Q4 non-GAAP operating margin was 14.8%.

• Adjusted free cash flow for FY26 was $346 million, with a 20% margin.

• GAAP net income benefited from a one-time $435 million deferred tax asset valuation allowance release.

Outlook and guidance

• FY27 total revenue expected between $1.985 billion and $2 billion, representing 14.6% year-over-year growth at midpoint.

• Sales-led subscription revenue guidance for FY27 is $1.673–$1.688 billion, up 16.9% at midpoint.

• FY27 non-GAAP operating margin expected at approximately 19%; adjusted free cash flow margin at ~21.5%.

• FY27 non-GAAP diluted EPS projected at $3.21–$3.29.

• Medium-term FY29 non-GAAP operating margin target raised to ~25%.